United Nations
Office for the Coordination of Humanitarian Affairs - Belgrade

Review of Urgent Assistance Needs for the Federal Republic of Yugoslavia (Excluding Kosovo)

Winter/Spring 2000/2001

December 5, 2000

Steadily declining purchasing power combined with increasing prices of food on the market, high unemployment and under-employment and large numbers of refugees and IDPs, has meant that a large percentage of the population are in need of food support.

Currently there are three large groups of people who are supported by food aid:

1. refugees from Bosnia & Herzegovina and Croatia,
2. social welfare recipients, who have received low and irregular payments during the past three years, plus low-income pensioners (pension below US$16 per month)
3. internally displaced people from Kosovo.

Refugees and social cases are assisted by WFP, and some social welfare recipients and the internally displaced persons are assisted by the ICRC and through NGO soup kitchens. The total number amounts to about one million. While food assistance is more essential for refugees, who lack legal status in the country and thus have limited access to income opportunities, the assistance to social welfare recipients and IDPs supplements government cash payments, which can be used for other essentials. The needs for the first six months in 2001 for humanitarian food assistance (excluding soup kitchens) are estimated at US$ 43.1 million. About 90% is designated for Serbia and 10% of the total is for Montenegro. This represents about one-half of the humanitarian food needs for FRY in 2001 as identified in the 2001 UN Humanitarian Consolidated Appeal. Of these needs, about US $ 25 million of available donor assistance is likely to be carried over into 2001. Montenegro is traditionally not self-sufficient in food production, although currently there are significant capital infusions stabilizing the economy, while some humanitarian food needs still prevail.

In addition to these humanitarian needs, the country faces shortages of edible oils and sugar, and a decline in milk and meat production due to lack of fodder. To help meet these needs at stabile and affordable prices, a market stabilization programme has been proposed. For this purpose during the winter months, 24,800 MT of food (edible oils and sugar) valued at about US$ 20 million is needed. In addition, animal feed is also needed to prevent long-term damage to the livestock industry. Estimates of requirements in this area are not available.

Historically the agriculture sector comprises about 20% of the GDP and exports were a source for both hard currency and for barter. After years of deterioration, floods, and drought in 2000 further reduced output. The collapsing subsidy system and the pricing structure in the country has provided significant disincentives to farming adding to the problems. To begin to help the country to return to self-sufficiency in the agricultural sector requires urgent assistance as well as support for revitalized production. Fuel for equipment to undertake winter agricultural works is needed, as well as fuel and other inputs for commercial fertilizer production in Serbia. These fuel needs are included with energy requirements and shown in detail in Annex 4. Assistance is also required to vulnerable rural farmers with inputs of fertilizer, animal feed and some equipment. The most urgent requirements for the agriculture sector (excluding fuel) totals US$ 10.2 million. Table 3 shows the total gaps for the food and agriculture sector. There is a lack of detailed information on the current status of this sector and for the broader needs. More study of this sector is therefore urgently required.

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